global market trade.pdf - STUDENT NAME-PRIYANKA SHARMA...

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STUDENT NAME: - PRIYANKA SHARMA STUDENT ID: - 20015446 SUBJECT: - BUSINESS OPERATIONS ASSIGNMENT 2 TOPIC: - DOING BUSINESS IN GLOBAL MARKET- ELECTRA BIKE COMPANY DATE: - 6/02/2020 SUBMITTED TO: - SHEIKH AKHTAR 1.Question: - What major advantages did Electra gain by using a contract manufacturer in Taiwan to produce its bikes? Ans: - Outsourcing: -Obtaining goods and services from the outside or foreign supplier, especially in place of an internal source is known as outsourcing. In the case of Electra bikes, by having contract manufacturer in Taiwan to produce bikes they can easily export bikes to neighbouring countries like china where bikes are most popular. they can in turn feed their domestic demand by importing bikes into the U.S. this practice is actually
cheaper for Electra than producing bikes on their home soil. This outsourcing of production to a foreign manufacturing plant helps Electra keep its cost down. 2.Question: - When Electra produce its bikes in Taiwan, did the

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